German fintech rivals Deposit Solutions and Raisin merge to form Raisin DS – a European champion with global ambitions

Raisin-Deposit-Solutions-Merger

The two German FinTech giants Deposit Solutions and Raisin have just announced the completion of their merger. After over a year of preparation, the two companies are forming Raisin DS, a pioneer in the savings and investment market, servicing banks and consumers on both sides of the Atlantic.

Founded in 2011, Deposit Solutions is the leading B2B Open Banking platform in the savings deposit space. The Hamburg-based company operates deposit marketplaces for over 150 partners, including large institutions such as Deutsche Bank, and connects them with deposit-taking banks from all across Europe. Raisin, which was founded in 2012, today is the leading pan-European B2C platform for savings and investments. Raisin’s marketplaces offer consumers simple access to competitive deposit products from all across Europe. In Germany, the FinTech company also offers globally diversified, cost-effective ETF portfolios and ETF-based pension products.

As Raisin DS, both companies will now be able to unite the best-in-class B2B offering and Europe’s leading B2C savings marketplaces under one roof. By joining forces, Deposit Solutions and Raisin are creating additional benefits for all market participants. For savers, the merger means more product choice and decision power, incumbent banks will benefit from more implementation options and product access for their own marketplaces, and deposit-taking banks will receive better access to deposit funding.

Dr. Tim Sievers, CEO and founder of Deposit Solutions, stated: “Deposit Solutions and Raisin have brought important innovations to a market that has been underserved for decades. Together we can achieve even more. By uniting Deposit Solutions and Raisin, we’re transforming two German innovation leaders into the European champion with global ambitions.”

Dr. Tamaz Georgadze, CEO and co-founder of Raisin, who also spoke at this year’s EU-Startups Summit, added: “Raisin DS is breaking down barriers and reinforcing our long-time vision for a single transparent market for savings and investment products. We want to contribute to a financial system that better serves day-to-day financial needs of people and enables banks to provide a stronger backbone to the real economy. We will continue to strive to make a positive contribution to the financial system.”

Deposit Solutions and Raisin are already collaborating with about 400 banks and financial services providers from more than 30 countries. Both fintechs are active in Europe as well as the United States and are backed by renowned international investors.

Both companies’ current management will take over leadership roles at Raisin DS. Thus, both CEOs – Dr. Tamaz Georgadze and Dr. Tim Sievers – will initially lead the new company as co-CEOs. Dr. Tim Sievers will then move to the company’s Advisory Board at the end of the year.

Dr. Tim Sievers added: “We have been working on this merger for a long time and I am happy and proud that we were able to turn competitors into allies. With joint forces, we are going to increase our market coverage in Europe, build a significant presence in the U.S., and pursue our mission to establish Open Banking as the industry standard in the global deposits business.”

Given the sizable European deposit market of €20 trillion, Raisin DS still has significant growth potential in its home market. In addition, the $17 trillion (€14 trillion) U.S. market, which both companies only recently entered, represents another major growth opportunity. Going forward, Raisin DS plans to invest in its platforms, extend the product range and expand into new markets.